Essay on Strategic Management: Ikea Case Study

3371 Words Mar 20th, 2008 14 Pages
‘Strategic Management’ is a very complex term as many eminent researchers and scholars have had different views and conclusions on strategy. According to White (2004), “Strategic Management involves both systematically developing an idea together with its implications and testing the empirical validity & usefulness of that idea against the real world.” Thus strategy is not only about planning for future but also about confirming the validity of the hypothesis considered and implementing it successfully. Strategy formation may take various forms such as implicit, explicit or emergent. Implicit strategy is a strategy formed by intuitions of an individual. As per implicit strategists, strategic management is about reading the environment …show more content…
Design school clearly separates formulation from implementation. Thus formulator has nothing to do with the implementation and implementers just have to follow the strategy given to them. CEO has already had problems of delegating responsibilities to staff. Hence even if good strategy is formed, poor implementation leads to failure of strategy. Design school encourages strategists to simplify the strategy which restricts their thinking and learning abilities. Thus design school gives a good framework for strategy building but fails to give the required path for success. (Ansoff, 1991)

Planning school model gave out a more formal approach towards strategy building. Strategy was formed by a sequence of process, divided in to distinct parts and represented by checklists. CEO approves the strategy but actual powers lie with planners who play a major role in the planning school.
First stage of planning model is about setting various goals of an organization. If strategy for The Comfort Zone was applied on the lines of planning school, it would set goals such as strengthening market position, expansion by entering new market and invest for better functioning of an organization. External and internal conditions which include forecasting competitive environment and study of strengths and weaknesses respectively are then studied. Evaluation of a project may be done using techniques such as PEST or value